Three oil firms, Nigeria’s NNPC in talks to buy stake in Dangote refinery

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A employee walks previous storage tanks at Dangote oil refinery in Ibeju Lekki district, on the outskirts of Lagos, Nigeria August 7, 2019. Image taken August 7, 2019. REUTERS/Temilade Adelaja

4 oil corporations together with Nigeria’s state-oil firm have approached Dangote Industries to amass a stake in Africa’s largest oil refinery, a senior govt instructed Reuters on Friday.

Devakumar Edwin, group govt director, stated the corporations from Western and Center East international locations and concerned in buying and selling and crude manufacturing have been trying to safe crude provide agreements, an analogous goal to that pursued by the Nigerian Nationwide Petroleum Company (NNPC).

“They’re searching for to have 20% minority stake in Dangote refinery as a part of collaboration … in order that they will promote their crude,” Edwin instructed Reuters by phone.

He stated Dangote refinery isn’t searching for fairness and the corporate needs to have the ability to safe crude from the market.

Nigeria, Africa’s greatest crude oil exporter, imports nearly all of its gas because of moribund state refineries, which has prompted the state oil firm’s curiosity within the 650,000 barrel per day (bpd) Dangote refinery.

NNPC’s spokesman, talking to Reuters in a cellphone interview, stated the company had thought of the concept of buying a stake within the $19.5 billion oil refinery venture owned by Africa’s richest man, Aliko Dangote.

Edwin stated the refinery is scheduled for mechanical completion this yr with commissioning by January 2022.

Nigerian billionaire Dangote, who constructed his fortune in cement, first introduced a smaller refinery in 2013, to be completed in 2016. He then moved the location to Lekki, in Lagos, upgraded the scale and stated manufacturing would begin in early 2020.

The corporate has held talks with corporations together with Vitol(VITOLV.UL) and Trafigura (TRAFGF.UL) over the provision of crude and lifting of petroleum merchandise on the market overseas.

Nigeria misplaced its greatest buyer, america, after it begin producing shale oil. The U.S. is now pushing into a few of Nigeria’s most valued markets, Edwin stated.

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